The Federal Government of Nigeria (FGN) Bonds Issuance Calendar for the fourth quarter of 2022, which includes an N720 billion borrowing plan for the time period, was announced by the Debt Management Office (DMO) despite struggles to service the existing N41.60 trillion debt.
Godwin Oyedokun, an economist and professor of management and accounting at Leads City University in Ibadan, responded to the situation in an exclusive interview on Wednesday. He claimed that the Federal Government was callous and used borrowing to further its own selfish goals.
He pointed out that the amount of credit Nigeria has been borrowing has not resulted in much, if any, equal infrastructure development.
He bemoaned the fact that most loans for infrastructure projects are simply economic extortion because they are so expensive in comparison to other places.
According to him, “It is insensitive on the part of the government to be borrowing at this stage.
“They are borrowing for the next generation to pay because this administration has less than 9 months left.”
He noted that “borrowing for infrastructural development is not bad but over the years nothing has been achieved with the funds borrowed. Rather the government is borrowing to finance the internal/personal pocket of some people.”
He added that “economic extortion has come into it because the loans are way too expensive compared to the amount that it would be done elsewhere”.
Recall that a month ago, the Director General, DMO, Mrs. Patience Oniha revealed that Nigeria’s total debt profile as of March 2022 stood at N41.60 trillion.
Oniha said this during her appearance at an engagement a month ago on the 2023 – 2025 Medium Term Expenditure Framework (MTEF) and Fiscal Policy Paper held by the House of Representatives Committee on Finance.
As a defense to the borrowing spree outrage from Nigerians, she attributed increased debt stock to dwindling revenues and the deficit in the annual budget as approved by the National Assembly.